Obama's Capital Gains Tax

[Kidlicious]

Originally posted by Dauphin


Oh, right. Let me rephrase. You are talking out of your arse, as it is a very common occurence.

Since I'm the tax preparer you are talking out of your ass. In fact, you haven't even filed one tax return with the IRS, now isn't that the truth.

A 2 second google search provides a simple example:

http://www.easytaxsupport.com/cantpay/

The bottom line is that it would be cheaper and less costly if one would take out a bank loan or make a credit card payment to take care of an outstanding tax bill.

https://www.debthelp.com/guides/taxes/how-to-pay-taxes-with-loans.html

Can I get a loan to pay my taxes?

To help you quickly pay off any tax debt you may have before any serious action can be taken by the IRS, applying for an IRS tax loan may be just what you need. It is important that you consider your options and apply early in the process. The longer you wait the more it will cost you since the IRS will charge penalties on any money that you owe after the due date. A debt consolidation company like DebtHelp.com may be able to help you find a loan with a lower interest rate than what you might pay through the IRS.

Maybe the IRS says something about taking loans to pay tax bills.....

http://www.irs.gov/newsroom/article/0,,id=172694,00.html

IRS Summertime Tax Tip 2008-11

The vast majority of Americans get a tax refund from the IRS each spring, but what do you do if you are one of those who received a tax bill? What do you do if you owe money to the IRS and can’t pay?

The IRS encourages you to pay the full amount of your tax liability on time. If you get a bill for late taxes you are expected to promptly pay the tax owed including any additional penalties and interest. It is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the IRS. You can also pay the bill with your credit card. The interest rate on a credit card or bank loan may be lower than the combination of interest and penalties imposed by the Internal Revenue Code.

As your own source mentions, most people don't have a tax bill at the end of the year. If a tax payer does have a tax bill at the end of the year, it's because they didn't pay enough taxes in during the year. Usually when that's the case they have a small tax bill. Sure they can use their credit card for a small amt, but a bank loan is way too much of a hassle. In my case, I've never know any tax payer to take out a bank loan to pay their tax bill.

Again, most people pay their taxes as their money is earned. That's what they are suppose to do. Generally, people DO NOT borrow money to pay their bill.

[Dauphin]

Originally posted by Kidicious

Since I'm the tax preparer you are talking out of your ass. In fact, you haven't even filed one tax return with the IRS, now isn't that the truth.

Is that all you've got.

I've done quite a few tax returns in my time, I wouldn't claim tax as my speciality though.

[chequita guevara]

but not with the IRS, I imagine.

[Dauphin]

It wouldn't be relevant even if I hadn't (incidentally I have done such work in an expressly non-professional capacity to help out family/friends).

Professionally, I'm directly aware of people often taking loans to pay their taxes, in several jurisdictions including the US. As I say though, tax isn't my speciality.

[Kidlicious]

Originally posted by Dauphin


Is that all you've got.

I've done quite a few tax returns in my time, I wouldn't claim tax as my speciality though.

It seems as though you would know that we pay our taxes when we earn our money so that we don't have to take out loans for the bill, but you don't.

[rmsharpe]

Originally posted by Kidicious
In the same sense that raising taxes would raise revenue. That was my point, that cutting spending has the same effect as raising taxes.

Cutting spending has the same effect as raising taxes? Cutting spending would supposedly put more money in the consumer and investment economies (if the government were to actually collect less and the deficit was paid down), not take away from it.

[Kidlicious]

Originally posted by rmsharpe

Cutting spending has the same effect as raising taxes? Cutting spending would supposedly put more money in the consumer and investment economies (if the government were to actually collect less and the deficit was paid down), not take away from it.

What amazes me is that you have said on this website that the problem with communists is that they aren't economists, yet you don't understand economics at all.

Both raising taxes and cutting spending means that less money will be created that year. The question is where would that money have gone. In the case of capital gains tax that money would have gone to people who have created those taxable gains. In the case of cutting spending that money would have gone to those who would have recieved it.

[Dauphin]

Originally posted by Kidicious


It seems as though you would know that we pay our taxes when we earn our money so that we don't have to take out loans for the bill, but you don't.

We aren't talking about PAYE taxes as being the cause though are we.

[Kidlicious]

Originally posted by Dauphin
We aren't talking about PAYE taxes as being the cause though are we.

We are required to pay in ANY taxes the we create a liability for quarterly. If we don't we have to pay a penalty. So not paying your taxes quarterly and then taking a loan out to pay them is not rational.

[Dauphin]

What would you do if you don't have the cash to pay your liability?

[Kidlicious]

Originally posted by Dauphin
What would you do if you don't have the cash to pay your liability?

The IRS isn't suppose to tax you if you don't have the cash. When you sell the asset you should have cash to pay the tax.

[Dauphin]

Life ain't that simple Kid.

[rmsharpe]

Originally posted by Kidicious


What amazes me is that you have said on this website that the problem with communists is that they aren't economists, yet you don't understand economics at all.

Both raising taxes and cutting spending means that less money will be created that year. The question is where would that money have gone. In the case of capital gains tax that money would have gone to people who have created those taxable gains. In the case of cutting spending that money would have gone to those who would have recieved it.

Then explain how spending increases the money supply.

[DanS]

I haven't been involved in this thread, but it should be noted that many capital gains are already shielded from taxes -- through 401(k)s, IRAs, and real estate roll-overs.

Even so, our savings rate has been low lately. Sometimes even negative. It doesn't make sense to me to punish savings in this context or to advantage some forms of investments (real estate, retirement), over others.

Therefore, I would propose to do exactly opposite of what Obama proposes. I would do away with capital gains taxes and dividend taxes.

[Kidlicious]

Originally posted by rmsharpe

Then explain how spending increases the money supply.

I believe I've done that several times here.